Ask Terry Questions Home & Auto Insurance

Home & Auto Insurance

By Terry Savage on October 28, 2018 | Insurance & Annuities

Ms. Savage, We currently use an insurance broker for our bundled home & auto insurance. Every few years we review our coverage and insurance cost. Is it better to contact insurance companies directly or use a broker? We do receive a lot of quotes from insurance agents in the mail but I think they often low ball the price and it will increase quickly. Your expertise is appreciated. Thank you.

Terry Says

There is a certain value to bundling your insurance coverage — and you only find that out AFTER a claim, when most companies raise rates. At that point you can tell your broker to remind them that you are a long-time client, and have a LOT of insurance with this company — and that fact will save a future premium increase. Most people don’t think that way, but in my personal experience it can be important. I guess that’s what Allstate and State Farm count on — loyalty!

It doesn’t hurt to check to see if you are over-paying by getting other quotes, outside your insurance broker. Then you can show him or her, and ask them to match. You certainly don’t want to overpay vastly. But penny wise, pound foolish!

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